2025-01-28 21:02

WASHINGTON, Jan 28 (Reuters) - The Republican chair of the Senate Judiciary Committee and the panel's top Democrat asked U.S. President Donald Trump to detail his rationale for firing 18 inspectors general that provide oversight at U.S. government agencies. Senators Chuck Grassley and Dick Durbin called on Trump to "immediately" provide the lawfully required substantive rationale, to share the names of each official who will serve in an interim capacity --and noted the law requires 30 days' notice before the government watchdogs can be fired. "The law must be followed. The communication to Congress must contain more than just broad and vague statements; rather, it must include sufficient facts and details to assure Congress and the public that the termination is due to real concerns about the Inspector General’s ability to carry out their mission" the senators wrote. They also called on Trump to "work quickly to nominate qualified and non-partisan individuals to serve in these open positions." Trump fired the IGs at the State, Defense, Transportation, Labor, Health and Human Services, Veterans Affairs and other departments. The White House did not immediately comment. Inspectors general are independent watchdogs tasked with rooting out waste, fraud and abuse. They are nonpartisan, and typically serve in their posts across multiple presidential administrations, regardless of which party controls the White House - investigating a wide range of issues from oversight of the Boeing 737 MAX production issues to military aid to Ukraine. Inspectors general were abruptly fired on Friday evening from agencies such as the Department of Defense and Department of State, despite a legal requirement for the president to notify Congress 30 days in advance and provide a detailed explanation for their removal. Their removal has raised alarm bells among Democrats and others in the inspectors general community, amid concerns that Trump may try to replace them with loyalists. Sign up here. https://www.reuters.com/world/us/us-senate-judiciary-committee-asks-trump-detail-rationale-firing-18-igs-2025-01-28/

2025-01-28 20:52

STOCKHOLM, Jan 28 (Reuters) - Sweden's LKAB could supply around 18% of Europe's rare earth metal demand in the long term if its north Arctic Per Geijer mine enters production, the company said on Tuesday as it began construction of a related processing facility. Rare earths are a group of 17 metals critical to products from lasers to iPhones and green technology key to meeting Europe's climate goals. State-owned LKAB broke ground on Tuesday on its 800 million crown ($73 million) Lulea plant in northern Sweden, which will process mining waste, including potentially from Per Geijer, into rare earth concentrate, phosphoric acid - used in many fertilizers - and gypsum. "We see our first stage for phosphates at around 6% (of European demand) and rare earths about 2.5%," Darren Wilson, senior vice president of the LKAB special products business area, said. "When we expand fully and exploit the potential of Per Geijer, we see that being up to around 18% (of rare earths)." The Lulea facility will initially process waste from LKAB's Malmberget mine in Gallivare, northern Sweden, with commercial production starting in late 2029 or early 2030. Lulea's development is not dependent on whether LKAB develops the Per Geijer find, which has resources of around 1.7 million tonnes of rare earth oxides. That could take a decade. LKAB has submitted an application for a processing license which will give it exclusive rights to develop the deposit. But it still needs an environmental permit and other regulatory approvals before it can start commercial operations. The strategic importance of rare earths has been highlighted by increasing trade tensions with China, Russia's war in Ukraine and U.S. President Donald Trump's desire to get control of mineral-rich Greenland. In 2023, the European Union adopted the Critical Raw Materials Act which aims to reduce EU reliance on other countries for minerals like rare earths neodymium, dysprosium and praseodymium which are used permanent magnets for wind turbines and electric motors. ($1 = 11.0130 Swedish crowns) Sign up here. https://www.reuters.com/markets/commodities/swedens-lkab-says-it-could-meet-18-europes-rare-earth-needs-with-per-geijer-mine-2025-01-28/

2025-01-28 20:05

BRUSSELS, Jan 28 (Reuters) - The European Commission proposed on Tuesday imposing tariffs on more agricultural products and certain nitrogen-based fertilisers from Russia and its ally Belarus to prevent a potential threat to EU food security. The EU executive increased tariffs last year on imports of grain from the two countries. It said the new tariffs would apply to the 15% of agricultural imports from Russia in 2023 that had not previously been subject to increased duties. The tariffs on certain nitrogen-based fertilisers would support domestic production and allow for diversification of supply from elsewhere, the Commission said. It said in a statement it wanted to hit Russian export revenues and Moscow's ability to wage war against Ukraine and to reduce dependencies on imports from the two countries. "Such imports, particularly of fertilisers, make the EU vulnerable to potential coercive actions by Russia and thus present a risk to EU food security," the Commission said. The fertiliser tariff hike would include mitigation measures if EU farmers saw substantial price increases. It would not affect the transit of Russian agricultural and fertiliser exports to third countries, the Commission said. The EU had previously avoided imposing sanctions on Russian agricultural products and fertiliser so as not to disturb global supplies, particularly to developing countries. The Commission's proposal will come into force after expected approval by EU governments and the European Parliament. Last year, the new tariffs took about two months to enter force. Sign up here. https://www.reuters.com/markets/commodities/eu-plans-tariffs-russia-belarus-farm-produce-fertilisers-2025-01-28/

2025-01-28 19:45

NEW YORK, Jan 28 (Reuters) - Talen Energy (TLN.O) , opens new tab is asking a U.S. appeals court to weigh in on a decision by federal regulators last year to reject a power agreement for an Amazon (AMZN.O) , opens new tab data center connected directly to Talen's Pennsylvania nuclear plant, according to court filings this week. As Big Tech attempts to quickly scale its massive AI data centers, placing the centers directly at power plant sites in an arrangement known as co-location has become an attractive prospect for the industry to get massive amounts of electricity fast. Early last year, Talen sold Amazon the data center campus at its Susquehanna nuclear generating facility in a deal that would eventually allow the center to receive nearly 1 gigawatt of electricity, which is roughly enough energy to power all of the homes in Philadelphia. The Federal Energy Regulatory Commission in December denied Talen's request for an amended interconnection agreement that would have allowed it to increase electricity supplies to the data center. While there are various ways to co-locate energy supplies, the Talen deal would redirect electricity from the regional power grid, which FERC said could worsen a supply and demand imbalance on parts of the country's electric system. Talen is now petitioning for a review of FERC's rejection, including a rejected rehearing request, by the United States Court of Appeals for the Fifth Circuit. If the court takes up the request, it could result in FERC's decisions being overturned or being kicked back to the regulators for review. It could also result in the court upholding the regulator's decision. Sign up here. https://www.reuters.com/legal/talen-goes-court-over-fercs-amazon-co-located-data-center-rejection-2025-01-28/

2025-01-28 19:44

Company returns to US market after a decade Investors cautious amid tariffs risk Debut comes after scaled-back IPO Jan 28 (Reuters) - Smithfield Foods was valued at $7.7 billion after its shares fell 3.2% on Tuesday, in a muted debut that might prompt other IPO candidates to tread cautiously. The lukewarm reception to the largest U.S. pork processor's public offering, following closely on the heels of Venture Global's (VG.N) , opens new tab underwhelming debut last week, underscores investors' cautious approach to new listings. Despite the surge of optimism sparked by President Donald Trump's pledges for pro-business policies and corporate tax reductions, concerns about unpredictable interest rates and inflation have tempered overall economic confidence. Even tried-and-tested companies such as Smithfield, which was founded in 1936 and is profitable, may have to temper their valuation expectations, analysts have said. "For companies planning IPOs this year, this may be a wake-up call to align their expectations with the new, more selective investment climate," said Aakarsh Rattan Ramchandani, chief analyst and strategy officer at financial insights platform Bigdata.com. Smithfield, with a workforce of 34,000 in the U.S. and 2,500 in Mexico, had warned of tariff risks and immigration-related workforce disruptions in its IPO prospectus. These concerns have become more pressing with President Trump's recent threats of universal tariffs and the beginning of a sweeping immigration crackdown when he took office earlier this month. Export sales accounted for 13% of Smithfield's total sales for the nine months ended Sept. 29. Its stock was last trading at $19.36, compared with the IPO price of $20, below the $23-$27 range it had forecast earlier. "Investors in their IPO will likely need to price in additional risks related to trade tensions, potential tariffs and immigration risks," Ramchandani said. Smithfield had initially targeted proceeds of up to $940 million but downsized the IPO and settled for $521.7 million, to be divided between it and its parent company WH Group (0288.HK) , opens new tab, which was also selling some shares. "We have an extremely strong balance sheet. We wanted our share price to be in a position to trade really well over the course of the coming future," CEO Shane Smith told Reuters. "We believe that the heavy lifting is done," he said, adding the company would now focus on optimizing and growing the business. Smithfield became the largest fresh pork processor in the U.S. via a series of acquisitions in the 1980s. It was listed on the New York Stock Exchange from 1999 until 2013, when it was acquired by Hong Kong-based WH Group for $4.7 billion in what was the biggest Chinese takeover of a U.S. firm at the time. Smithfield sources its pigs from farms in the U.S., including 4,000 independent family farms, and Mexico. Its portfolio of brands includes Eckrich and Nathan's Famous. Sign up here. https://www.reuters.com/business/smithfield-foods-valued-84-bln-shares-rise-market-debut-2025-01-28/

2025-01-28 19:43

Jan 28 (Reuters) - Oil and gas producer Chevron (CVX.N) , opens new tab said on Tuesday it plans to build natural gas-based power plants next to data centers in the U.S., as energy demand to support the growth of artificial intelligence is expected to boom. The second-largest U.S. producer is partnering with investment firm Engine No. 1 and electric services company GE Vernova (GEV.N) , opens new tab on the project. Chevron's announcement comes a day after Chinese startup DeepSeek unveiled an AI model that it says uses far less computing power than industry-leading models in the United States, prompting investors to question the billions of dollars spent on AI infrastructure and sparking a massive sell-off in tech and power stocks. Despite the market's reaction, DeepSeek demonstrates the energy requirements that will be needed to support the United States' ability to compete in the global AI race, said Jeff Gustavson, president of Chevron New Energies, during a press briefing. "It underscores how competitive and fast-moving this is," he said. "We still see the growth in electricity demand." The project will use GE Vernova's natural gas turbines to deliver up to 4 gigawatts of power - enough to power roughly 3 million homes - to data centers located in the U.S. Southeast, Midwest and West regions. The power will initially bypass the existing transmission grid, which reduces the risk of raising electricity costs for households and consumers, the company said. Chevron said it is in conversations with multiple potential customers to determine the locations of the data centers and power plants, declining to name who it is speaking with. Chevron expects to begin initial service by the end of 2027, with the potential for project expansion beyond the 4-GW capacity. "President Trump's pro-American energy policies and commitment to energy and AI dominance give us the confidence to invest in projects that will create American jobs and strengthen our national security," Chevron CEO Mike Wirth said in a statement. The projects are also expected to be designed to potentially integrate carbon capture and storage, and renewable energy resources. Sign up here. https://www.reuters.com/business/energy/chevron-partners-with-engine-no-1-ge-vernova-power-us-data-centers-2025-01-28/